BUDGET 2018: does no harm

Speaking on video, Yetsenga said in a perfect world tax cuts should be affordable, efficient and effective and that the budget measures meet the criteria. 

"You’d argue from an economic perspective if the government wanted some economic stimulus, it’s going to get some.”

‘You’d argue from an economic perspective if the government wanted some economic stimulus, it’s going to get some,” he said. 

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Despite the rosier forecast Yetsenga said there were still structural issues avoided by the budget – and that it seemed to lack an underlying plan.

“I don't want to get too pessimistic about the budget as it does have some good aspects,” he said, noting political realities meant real reforms were unlikely.

“Really the hurdle for the budget is that it does no harm,” he said. “This budget meets that test.”

Watch the video above to find out more.

Richard Yetsenga is Chief Economist at ANZ

You can read bluenotes’ full coverage of #Budget2018 HERE.